ZB

Zebra Technologies Corporation stock research

Sep 28, 2024

FY2024 Q3

Zebra Technologies (ZBRA) Gross Margin — Quarter Ended Sep 28, 2024

Revenue, gross profit, and cost of revenue all increased, with gross profit rising relative to revenue, resulting in a higher gross margin. Compared to the prior quarter and the same quarter last year, gross margin improved, while revenue and gross profit were higher.

Gross margin takeaway

Quarter ended Sep 28, 2024 · FY2024 Q3

Revenue, gross profit, and cost of revenue all increased, with gross profit rising relative to revenue, resulting in a higher gross margin. Compared to the prior quarter and the same quarter last year, gross margin improved, while revenue and gross profit were higher.

  • The strongest observable margin driver is the increase in gross profit relative to revenue, which led to a higher gross margin in the current quarter.
  • Sequentially, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Year over year, all metrics were higher and gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

48.8%

Gross profit

$613.0M

Revenue

$1.3B

Cost of revenue

$642.0M

Quarter-over-quarter change

+0.4 pts

Year-over-year change

+4.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$1.0B$448.0M$561.0M44.4%
Mar 30, 2024$1.2B$563.0M$612.0M47.9%
Jun 29, 2024$1.2B$589.0M$628.0M48.4%
Sep 28, 2024$1.3B$613.0M$642.0M48.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 29, 2024

+0.4 pts

Year-over-year change

Sep 30, 2023

+4.2 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the increase in gross profit relative to revenue, which led to a higher gross margin in the current quarter.

Sequentially, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Year over year, all metrics were higher and gross margin improved.

Monitor the trend in cost of revenue relative to revenue, as changes in this relationship directly affect gross margin.